Ether shorter gains $68M on 50x leverage as ETH drops 11%

Amazon Web Services (AWS) and Microsoft have been pulling back from AI data center investment, suggesting problems with the centralized model. Analysts are taking this latest development to reiterate why decentralized blockchain-based infrastructure could be the solution.

Kai Wawrzinek, co-founder of Impossible Cloud Network, discussed these looming questions in an exclusive interview with BeInCrypto.

AI Data Centers Hit a Wall

A few months ago, AI seemed like one of the global tech industry’s most promising sectors. However, with firms like AWS and Microsoft announcing pauses in AI data center construction, the picture looks very different. What happened? What does the future of AI look like? Kai Wawrzinek described the situation as it stands today:

“News that AWS is joining Microsoft in pulling out of new data centers when demand for AI is growing exponentially is testament to the enormous inefficiency this model presents for scaling the global internet. Microsoft and AWS may be coming to realize that centralized infrastructure models simply can’t adapt fast enough,” Wawrzinek claimed.

AWS and Microsoft aren’t the only companies facing these problems. Although Meta publicly claimed it would spend hundreds of billions on AI infrastructure and data centers, it asked competitors for funding less than three months later.

OpenAI, too, has been rocked by the sheer cost of operating ChatGPT; Sam Altman tacitly admitted that its research may never be profitable.

Wawrzinek sees a clear solution – abandon the centralized model altogether and focus on DeFAI. Although these industry leaders accumulated billions in capex and pioneered LLM development, the entire strategy can be self-defeating.

For example, US AI data center construction is swamping electrical engineers with work to an unprecedented degree. With so many professionals focusing on the centers themselves, it’s creating a bottleneck for skilled labor.

This harms renewable energy projects and the electrical grid, ironically harming the data centers’ functionality.

“The AI era needs infrastructure that can match its speed and scale, and decentralized systems are the only models built for that future. In contrast, a decentralized, market-driven approach solves this problem: capacity can be deployed more efficiently where and when it’s needed without waiting years for centralized megaprojects,” Wawrzinek added.

Can DeFAI Handle the Challenges?

Compared to the centralized data center model, DeFAI has increased AI compute accessibility. Blockchain-enabled economic incentives can accelerate deployment speed, enhance scalability, and optimize resource allocation without massive upfront capital.

These decentralized systems, in short, have more agility than their competitors.

Blockchain-based AI companies have been able to leverage significant compute capacity without centralized data centers. For example, the DePIN firm Aethir has made great strides with its GPU-as-a-service model.

Other firms like 0G Labs have proved that decentralized AI development isn’t just theoretically feasible; it’s profitable and necessary for the ecosystem.

If this all seems far-fetched or utopian, it’s important to remember AI’s “black swan” event – DeepSeek.

China’s market-moving genAI model proved to the entire world that AI firms can make state-of-the-art LLMs at a fraction of the hardware cost. So, the AI industry may need to rethink the data center model altogether if this one developer proved so successful.

Although skeptics have wondered whether decentralized AI can compete with data centers, the reality is that centralization can have its own inefficiencies.

“The future of AI infrastructure lies in open, permissionless networks, where supply meets demand dynamically and globally, not through outdated hyperscaler models that are struggling to keep up,” Wawrzinek finished.

So far, centralized AI firms have accumulated billions in venture capital investment, but their ability to innovate is hitting a brick wall. We may need a better model to create the best possible outcomes.

The post AWS and Microsoft Data Center Pullback Reveals Blockchain’s AI Imperative appeared first on BeInCrypto.

Cardano (ADA) is up more than 12% over the last seven days and is now trading above $0.70 for the first time since the end of March. Trading volume is also rising, up 33% in the past 24 hours to reach $723 million.

Despite the price recovery, some technical indicators suggest that ADA’s momentum is weakening and approaching key decision points. Here’s a closer look at Cardano’s current setup as the new week begins.

Cardano BBTrend Weakens After Positive Streak

Cardano BBTrend indicator is currently at 7.55, down from 13.27 just three days ago. This sharp decline shows that the strength of recent price expansion has cooled, even though the asset has posted positive daily closes over the last four days.

The falling BBTrend suggests that while ADA has been moving higher, the expansion’s underlying momentum is losing intensity.

This shift highlights a potential slowdown that could impact ADA’s ability to sustain further gains without renewed buying pressure.

The BBTrend, or Bollinger Band Trend indicator, measures the strength of a price trend based on the expansion or contraction of Bollinger Bands.

A rising BBTrend typically signals strong momentum and increasing volatility, while a falling BBTrend suggests weakening momentum or the start of a consolidation phase.

With ADA’s BBTrend now at 7.55, the indicator still points to some positive momentum, but at a much weaker pace than earlier in the week.

If the BBTrend continues to decline, ADA could enter a consolidation phase, but if buying pressure returns, the token could extend its current positive streak.

ADA Faces Indecision as Buyers and Sellers Battle for Control

Cardano Directional Movement Index (DMI) shows its Average Directional Index (ADX) currently sitting at 17.14, a notable drop from 31 two days ago.

This sharp decrease signals that the strength of ADA’s recent trend has weakened significantly. Meanwhile, the +DI (positive directional indicator) is at 19.95, up from 15.96 a few hours ago but still down from 26 two days ago.

The -DI (negative directional indicator) sits at 19.07, slightly down from 21.16 earlier but up compared to 14.49 two days ago, reflecting mixed momentum between buyers and sellers.

The ADX measures the strength of a trend without indicating its direction.

Readings above 25 typically suggest a strong trend, while readings below 20 point to a weak or consolidating market. With ADA’s ADX now at 17.14, trend strength is weak, and neither buyers nor sellers currently have a clear advantage.

The close values between +DI and -DI suggest that Cardano could enter a period of sideways movement unless either bulls or bears regain stronger control soon.

Cardano’s Bullish Structure Faces Critical Test Near $0.69

Cardano’s Exponential Moving Average (EMA) lines suggest an uptrend, with the short-term EMAs positioned above the long-term ones.

However, Cardano price has repeatedly tested the support level at $0.69 and is trading very close to it.

This price action signals that while the broader trend remains positive, the bullish momentum has weakened, and the $0.69 support is becoming a critical zone.

If ADA loses the $0.69 support, the next downside targets would be around $0.63, followed by $0.609 and potentially $0.59 if selling pressure accelerates.

On the other hand, if buyers step back in and reinforce the uptrend, ADA could rally to retest resistance at $0.746.

A breakout above $0.746 could open the door for a move toward $0.77, offering a strong bullish setup if momentum strengthens again.

The post Cardano (ADA) Bulls Hold Ground Despite Signs of Slowing Strength appeared first on BeInCrypto.

Webus International, a Nasdaq-listed Chinese AI solutions company, announced today that it’s planning to invest up to $300 million in an XRP reserve. The firm claims that this strategy is primarily aimed at facilitating cross-border payments.

Additionally, Webus aims to use XRP to help expand an AI-native company’s other blockchain-related development ambitions. Depending on the investment’s success, the firm may incorporate on-chain solutions in several fields.

Chinese Firm Bets Big on XRP

In recent months, many corporations have made serious attempts to hold substantial amounts of cryptocurrency.

Obviously, Bitcoin has been an early and enduring favorite, but certain companies have begun experimenting with altcoins like Solana. Today, one Chinese firm is innovating again by considering investing up to $300 million in an XRP reserve.

Webus is not the only Chinese company considering a massive crypto investment this month, but its XRP reserve plan seems more deliberate.

Two weeks ago, Addentax Group, a logistics firm, considered investing $800 million in BTC and TRUMP. This may have been an attempt to secure tariff relief, and Addentax barely mentioned its crypto ambitions.

On the other hand, Webus described a long-term vision for the XRP reserve in explicit detail:

“These strategic developments have the potential to create a powerful synergy between our domestic and international operations. The integration of an XRP blockchain integration has the potential to revolutionize how we handle cross-border payments for both partners and travelers worldwide,” claimed Nan Zheng, CEO of Webus.

In other words, Webus’ AI solutions cater to customers around the globe, and DeFi may help smooth over recurring problems. Chinese firms can experience difficulties with bank processing across borders, but XRP may provide a solution.

Webus mentions using the tokens for lending, shareholder guarantees, third-party credit, and other core financial interactions.

Furthermore, a $300 million investment could help an AI-specific firm access the other advantages of Web3. In addition to improving cross-chain payment operations, XRP integration will help develop the company’s blockchain infrastructure.

Webus’ press release mentions a few concrete goals like on-chain record keeping, loyalty tokens, and customer wallets.

Meanwhile, the company’s stock price has surged over 60% in after-market prices since the announcement.

XRP is already a leading cryptoasset, but $300 million is a substantial amount of money by any metric. If Webus helps integrate the token into the Chinese AI ecosystem, it could prove highly beneficial for XRP and the company.

Depending on the success of this reserve strategy, Webus could be setting a new trend for crypto’s worldwide integration.

The post Chinese AI Company To Invest $300 Million in XRP appeared first on BeInCrypto.